US Congress on Slippery Slope as it Seeks to Outlaw Venezuela’s Petro Cryptocurrency?

Venezuela’s national cryptocurrency venture continues to generate media buzz. The Petro is designed to bypass existing sanctions and embargoes imposed upon the country. US Congress members are not amused by this particular project and have drafted a bill to ban the digital currency altogether.

US Congress Tries to Block Venezuela’s Plan

No one is really surprised to learn US politicians are not keen on Venezuela’s digital currency. Known as the Petro, the digital money is backed by national oil reserves. This project has received plenty of opposition from day one. President Maduro went ahead with the plan regardless. As such, politicians and policymakers need to address the elephant in the room.

The new bill drafted by US Congress officials makes their intent crystal clear. The goal is to prevent US residents or companies to transact with the Petro cryptocurrency. Prohibiting these transactions is only normal at this stage. Venezuela tries to bypass current sanctions through this method, yet their venture may not work out according to plan.

This new bill will need to be reviewed and approved before it can become law. If approved, it will ensure no one in the US can buy, sell, or trade Venezuela’s cryptocurrency. It will also force the Venezuelan government to look for other international partners. That can only work if those partners acknowledge the Petro has an intrinsic value. To date, there are still numerous doubts regarding that aspect.

Is There a Future for the Petro?

International scrutiny regarding the Petro has not gone by unnoticed. In January of 2018, US senators shot down Venezuela’s plan. An open letter was sent to the US Treasury Secretary to monitor the situation accordingly. Additionally, two senators wanted the US Treasure to prevent Venezuela from using the Petro to bypass American sanctions.

Surprisingly, not everyone in Venezuela sees merit in the Petro either. Venezuela’s Congress confirms the national cryptocurrency is still illegal in the country. This verdict was handed down in January, yet it seems the project is still ongoing. President Maduro continues to focus on mass adoption despite the numerous hurdles to overcome.

The true value of this digital currency still remains in question. Despite being backed by oil reserves, no mining effort is taking place to bring value to the Petro. This has many individuals concerned regarding the potential future of this new project. Without oil reserves to back its value, the currency is virtually worthless. A peculiar situation that seems far from resolved at this time.

What do you think of the US’ plans to ban Petro trading? Is it a “slippery slope” to banning other cryptocurrencies? Let us know in the comments below.